5 Cincinnati startups atop Ohio funding list

Aerpio Therapeutics Inc., the Blue Ash biotechnology company, raised $22 million in venture capital during the second quarter – one of five Cincinnati startups topping a statewide list in a report out Friday.

The O'Gara Group, Roadtrippers, Lisnr and Frameri also were included in the PwC/NVCA MoneyTree Report based on data from Thomson Reuters.

The O'Gara Group, which develops security products and services, raised $5.5 million from Downtown's Walnut Group. Roadtrippers, a technology company, raised $2.8 million from two undisclosed firms.

Frameri, which makes lenses that can click into multiple eyeglass and sunglass frames, raised $690,000 from two undisclosed firms.

Lisnr, which helps companies reach consumers on mobile platforms using ultrasonic frequencies, raised $1.5 million, which is part of a $3.5 million round it recently announced. CincyTech is an investor.

CincyTech and another local fund, Triathlon Medical Ventures, participated in Aerpio's most recent round of funding. Aerpio is focused on treating vascular disease and inflammatory bowel disease.

Aerpio was developed from Procter & Gamble's drug discovery program, which the company licensed out after deciding to exit that business in 2006. P&G's program also produced Akebia Therapeutics Inc., which is working to develop and commercialize small molecules that treat anemia. Akebia went public this year.

For the quarter, venture capitalists invested $13 billion in 1,114 deals across the country. That's the largest total since $13.1 billion was invested during the first quarter of 2001, according to the report.

Software received the highest level of funding at $6.1 billion. Biotechnology companies were next at $1.8 billion.

"When we step back, we not only see technology as a megatrend impacting the way we live, but it's also disrupting entire industries by bringing the suppliers even closer to consumers," Mark McCaffrey, global software leader and technology partner at PwC, said in a news release.

"And, as the value of this technology is undeniable, we see VCs as well as non-traditional investors pursuing these deals more aggressively, resulting in higher valuations and larger capital investments." ■